The Maritime and Commercial High Court upholds the DCCA’s decision: Exchange of information between clothing retailers constituted a “by object” restriction of competition
Yesterday, the Danish Maritime and Commercial High Court’s judgement of 6 May 2024 in the Hugo Boss-case was published. The Court decided to upheld the Danish Competition and Consumer Authority’s (“DCCA”) two decisions against the three clothing companies, Hugo Boss, Kaufmann and Ginsborg, finding that the companies had illegally exchanged commercially sensitive information about prices, rebates and volumes.
As Hugo Boss sells Boss products directly to consumers in its own stores and at the same time supplies Boss products to Kaufmann's and Ginsborg's stores, Hugo Boss is active at the same market and thus competes with its own dealers (dual distribution). Therefore, according to the DCCA and the Court, the illegal exchange of information took place between competitors. The Court noted that although there was also a vertical cooperation between the parties, the information exchanged was predominantly horizontal in nature.
A minority of the Competition Appeals Tribunal did not consider that the concerted practice had the object of restricting competition. However, the Court disagreed and stated that the exchanged information was strategic, individualized and future information which was essential for and objectively had the potential to influence Kaufmann and Ginsborg's own pricing strategy for Hugo Boss's products to the detriment of consumers.
In general, an undertaking participating in dual distribution should carefully ensure that the undertaking and its distributors do not engage in illegal exchange of commercially sensitive information, for example by implementing an effective and consistent administrative separation between its distribution channels.
Read The Maritime and Commercial High Courts judgment here (in Danish): https://lnkd.in/dpnqEWjv
Read the DCCA’s press release here (in English): https://lnkd.in/dyqaB4dW
#DCCA #antitrust #competition #Article101
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